In my 1st blog on use cases for SAP EM we took you through some of the use case for SAP TM, GTS and SNC as well as the highly popular Track and Trace where folks simply want to know, from their carriers or freight forwarders, that their goods are on time… Seems simple but SAP EM is the standard tool provided for by SAP to provide this functionality. Now let’s take a look at a few more use cases.
- Several years back, in 2006, I chaired the SAP EM Influence Council for SAP where I helped gather requirements from the users of EM at the time. The number 1 request for additions to SAP EM was to provide an Order To Cash (OTC) visibility process. Well 6 years later SAP delivered, but they never delivered a free visibility process, but they delivered a “for fee” Rapid Deployment Solution called “Order Track and Exception Management”. I worked a little with SAP on the design so at least I know that it covers the essentials. It’s not quite how we implement it but in the end it will work just fine. For more details on the scenario check out Berthold’s blog posting on SCN.
Q Data has implemented SAP EM to cover the OTC several times now and we like to refer to it as WIMO… Where Is My Order. Simply put it tracks the lifecycle of a Sales Order line from creation through payment from the customer.
A typical lifecycle of an order goes through order management where delivery blocks, incompletion, CR holds and status management are typically addressed. It then flows through fulfillment through outbound delivery, purchase order or production order. These we track as individual event handlers and tie them together in the SAP EM Web UI. We finally end up with the invoice and it’s payment, hopefully within terms. Just a note here in that Track and Trace plays a part in this scenario as well since if we use a carrier or freight forwarder to deliver the goods then we would expect to receive EDI 214 / 315 messages to tell us the status of the shipments, which, in turn, will become part of the WIMO visibility report. Below is an example of a custom report pulling SAP EM data to provide end-to-end visibility to the OTC process. PS: Custom report was only developed because the sales reps were using a similar custom order entry screen and they wanted the same experience for them. Elsewhere we try and stick to the standard SAP EM Web UI.
You can read more on our WIMO related solutions on the Q Data website or listen to a pre-recorded webinar on the topic.
- Now let’s move on to the 2nd most widely used SAP EM use case… Procure to Pay (PTP). Let’s call it WIMPO 😉 or Where Is My PO? Again we take the process through order management together with Order confirmation (with or without changes), Supplier Advanced Ship Notice (ASN) as it relates to the Inbound Delivery (and any discrepancies found there), the goods receipt and ultimately invoice receipt and payment. At each step in the PTP process we could have a supplier potentially not executing according to the order agreed to up front. The dates, prices, product, quantities could vary between each of these stages and SAP EM is there to catch these and notify the correct people to address the issues. Ultimately this data should also be pulled in to your vendor scorecard so that vendors can be held accountable for their discrepancies. Below is an example we implemented for a large movie studio and you can see that we also integrated the EDI process in to the outbound PO process because there was some doubt in the POs always getting through to the supplier on time via an EDI X12 850 message. With this solution in place WIMPO was born and end-to-end procurement visibility was in place. Supplier’s could miss expectations but big brother EM was watching…
For more details on SAP EM integrated in to the PTP process please refer to our previously recorded webinar on the Q Data website.
Oh my goodness, so now we have all that was mentioned in the 1st part of this blog as well as monitoring for exception and status management for your OTC and PTP processes. I feel like that is plenty to mull over so I’ll continue in a 3rd part of this blog shortly.
Once again, let me know your thoughts by leaving a comment below.